Consider again the U.K. referendum on membership of the European Union (EU)  referred to in question 22, but this time from the perspective of an international investor. Assume that the downside risk for the U.K. economy from a Brexit vote would be much greater than for the rest of the global economy. Some countries could   even benefit from a Brexit vote. 

a. Why might you demand a relatively higher return on U.K. investments ahead of the vote? 

b. What strategy might you employ to reduce the risk associated with your U.K investments?